Client Escalation Clause
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An escalation clause, also referred to as an escalator clause, is a provision in a contract allowing for an increase in wages and/or prices. This type of provision is used under certain conditions, such as when abrupt inflation occurs or there is a disturbance in the supply chain.
This escalation clause may be inserted into an event service agreement, statement of work, a proposal, and/or merely discussed between a DMC and their client in situations where a program is susceptible to severe price increases between the date of contracting and program operation. Where this provision is inserted will, of course, impact its enforceability.